Brussels – The desire to defuse a tariff war that would benefit no one, or at least the intention to try: The much-anticipated meeting between Trade Commissioner Valdis Dombrovskis and China’s Trade Minister Wang Wentao is being staged in Brussels, seen as a political test case, if not decisive, certainly crucial for ending the Sino-European tug-of-war over electric car produced by Beijing industries. It goes on, looking for a shared agreement that is not there and does not come after the face-to-face. Same spirit, then, or almost.
According to EU executive spokesman Olof Gill, Dombrovskis expressed the EU’s strong concerns about China’s trade defence investigations against EU imports of brandy, pork, and dairy products. They are being read in Brussels as outright retaliation for Chinese electric car duties. Dombrovskis was keen to point out that these investigations are “unjustified,” “based on questionable allegations,” and without sufficient evidence. This was told Wang, to whom Dombrovskis also asked that these investigations be stopped. Otherwise, it will be a trade war. That’s not how the EU trade chief said it, but by promising that “the EU will do its best to defend the interests of its industries,” he veiledly informed his Chinese counterpart that he intended to go all the way if necessary.
Constructive meeting with Minister of Commerce Wang Wentao.
Both sides agreed to intensify efforts to find an effective, enforceable and WTO compatible solution to the BEV case.
This without prejudice to the EU investigation and its deadlines. pic.twitter.com/8P60L3pNYM
– Valdis Dombrovskis (@VDombrovskis) September 19, 2024#
All yet to be unravelled, then. More time is given, and optimism is also allowed. “Both sides,” Dombrovskis assures, “have agreed to intensify efforts to find an effective, enforceable and World Trade Organization (WTO)-compatible solution” on the issue of “made-in-China” electric cars and government subsidies considered by the EU harmful to competition.
The two sides still have a few weeks to find a solution, and Wang Wentao assures in this regard that China will remain engaged in negotiations on electric vehicles until the last moment. As a gesture of goodwill, at the end of the meeting, the European Commission agreed to review the price commitment offers sent by Chinese companies. Evidence of détente, in short, that gives a sense of willingness to try.
Dombrovskis took the opportunity to reiterate to Wang to refrain from helping or facilitating Russian President Vladimir Putin. China’s role in the context of the Russian-Ukrainian war is of concern, which Brussels ensures to have made clear. Rightful underlining for the Europeans, with the Chinese that never like interference in national policies and government agenda.
English version by the Translation Service of Withub
